The US dollar index as expected to pull back after a breakout above the important resistance trend line. The price is back testing the breakout area with potential of a deeper pullback as I believe that the entire move from 93.80 is completed and we have entered a corrective phase before the next upward move.
Red line – resistance
The US dollar index is trading above the Ichimoku cloud back testing previous highs and the breakout area. Support is found at the 38% Fibonacci retracement and I believe we should expect the pullback to at least reach that level.
As I said yesterday it is important to see where this weekly candle closes. We have seen the weekly candle break above the weekly resistance but it is also important to see if we have a rejection. A rejection at current prices could push the index even towards 95 again. The level of 93.80 is stop for bulls.The material has been provided by InstaForex Company – www.instaforex.com